Early 2000 High-Flyers Still Soaring
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On Wednesday we looked at Internet IPOs from the first two months of the year, noting that eight of the 32 companies going public in January and February posted first-day gains of 200 percent or more.
But where are they now? Let's look at the brief aftermarket performance of six of our top eight through Thursday afternoon trading. (We'll exclude net.Genesis (NTGN) and Avenue A (AVEA), which both went public only two days ago.)
The company with the best first-day performance of nearly 300 Internet IPOs in the past 15 months still has plenty of fuel in its tank. webMethods (WEBM), a maker of B2B software based on eXtensible Markup Language, or XML, closed at 212 5/8 on Feb. 11, a gain of 508 percent. Since then the stock has continued to soar, closing at 308 1/16 on Tuesday. It's fallen off quite a bit from then, to 283 15/16 Thursday afternoon. Still, I'd take 711 percent above the offer price.
Another e-business software and services provider, FirePond (FIRE), ended its first day of trading on Feb. 4 at 100-1/4, or 356 percent above its offer price. By the next trading day, Feb. 7, FIRE was down to $77 per share. For most of the rest of the month the stock kicked around in the 70s and low 80s before regaining lost altitude in recent days. It was trading at 88-1/4 Thursday afternoon.
With a closing price of $88 per share in its Feb. 18 IPO, Taiwanese broadband access provider GigaMedia (GIGM) posted a 226 percent first-day gain. After hanging below that amount for several days, the stock shot up to close at 90-3/4 on Wednesday. Shares were trading Thursday afternoon at 89.
Adding it all up, four of the six big Internet IPO gainers are trading above their first-day closing prices. Not surprisingly, three of the four are B2B e-commerce companies, the hottest sector of them all.
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